Will Greece Be Able to Resolve Issues With Its Creditors?
A new round of discrepancies has emerged between Greece and the international troika of lenders that has provided the nation with funds over the past few years.
Joerg Asmussen, an executive at the European Central Bank, said that there is a “significant fiscal gap” in the Greek budget that has been put forth for the upcoming year, Reuters reports. The current budget, which was unveiled by Greek officials this past week, has the country maintaining a primary surplus of nearly 3 billion euros. This means that if the country did not have to make debt payments, Greece would be in the black for the year.
However, the gap Asmussen refers to could put the entire budget into question. Early reports from the Greek media claim that the government will have to raise between 2 billion euros and 3 billion euros to cover the difference, and sources of funds are hard to come by right now for the country. Having already undergone significant austerity measures and tax increases, Greek government officials don’t have many places left to turn to raise money, especially with sales of some state-held assets already worked into the figures.